Home Case Index All Cases Companies Law Companies Law + SC Companies Law - 2015 (8) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (8) TMI 933 - SC - Companies LawRevocation of order accepting highest bid – auction of property of company under liquidation - High Court vide impugned order recorded that Company Judge’s order accepting bid of appellant was vitiated as Judge failed to take note of potential value of land and bid of appellant was inadequate price to property in question – Held that:- It was well settled principle as opined in case of Navalkha & Sons Versus Sri Ramanya Das & Ors. [1969 (10) TMI 41 - SUPREME COURT OF INDIA] that company court had discretion to either accept or refuse highest bid at auction, it also emphasizes obligation of Court to see that price fixed at auction is adequate price even though there is no irregularity or fraud in conduct of sale – Equally well-settled principle that once Company Court recorded its conclusion that price is adequate, subsequent higher offer cannot be ground for refusing confirmation – Highest bid of appellant was accepted by Company Court and all stake-holders of company in liquidation were heard before such acceptance – Nobody ever objected including first respondent at that stage on any ground whatsoever – No doubt, property in question became more valuable in view of subsequent development – None of stake-holders of Company in liquidation ever objected to offer of appellant on ground that it is inadequate consideration for property –Value of property in question must have escalated substantially in view of developments subsequent but allowing such attempt, would rob sales conducted by Courts of all sanctity – Thus, he High Court was not justified in recalling order accepting highest bid – Decided in favour of Appellant.
|